Misconception · MIS:bond-price-is-face-plus-coupon-total

Mistaken idea “Bond price is face plus all coupons”

Mistaken reasoning: This mistake adds undiscounted future cash flows and calls the total the issue price.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Issue price is the present value of coupon and principal streams at the matched supplied yield.

Where to watch

When this mistake may appear

  • Face amount and total coupon cash are given.
Check your work

Your work may contain this mistake if:

  • Issue price equals all future cash promised.